Production increases 83% to 1.6 million short tons
Sales
volume increases 32% to 1.1 million short tons
Board
approves capital allocation programs including quarterly dividend of
$0.05 per share
Net income of $108.3 million and Adjusted
EBITDA of $135.5 million
BROOKWOOD, Ala.--(BUSINESS WIRE)--
Warrior Met Coal, Inc. (NYSE:HCC) (“Warrior” or the “Company”) today
announced results for the first quarter ended March 31, 2017. Warrior is
the leading dedicated U.S. based producer and exporter of high quality
metallurgical (“met”) coal for the global steel industry.
“We are pleased with our strong performance in this first quarter
reporting as a newly listed company,” commented Walt Scheller, CEO of
Warrior Met Coal. “Over the past year, we have established Warrior as
the premier and only ‘pure-play’ met coal producer in the U.S. Warrior’s
unique value proposition is based on two principal factors: the strength
of our met coal assets, and our competitive positioning as a formidable
operator in the era of ‘new coal.’” Warrior began trading on the NYSE on
April 13, 2017.
Operating Results
Mine No. 4 and Mine No. 7 were both operational during the first quarter
of 2017, with one longwall at Mine No. 4 and two longwalls at Mine No.
7. Both mines continued to ramp up production toward the Company’s
historical annual production level of approximately 8 million short
tons. Warrior produced 1.6 million short tons of met coal in the first
quarter 2017 which was 33% better than expected, and included the move
of one longwall operation. “There is significant growth potential
embedded in Warrior’s existing operations,” added Mr. Scheller. “We have
improved our productivity and advance rates as our workforce continued
to skill up, and we will commit our catch-up capital spending to realize
nameplate production capacity in our two mines of about 8 million short
tons per year.”
Financial Results
Total revenues were $254.0 million for the first quarter of 2017,
including $241.1 million in mining revenues, which consisted of met coal
sales of 1.1 million short tons at an average selling price of $213.89
per short ton. During this period, the Company reported net income of
$108.3 million, or $2.06 per share. Adjusted Net Income for the first
quarter 2017 was $117.2 million, or $2.22 per share and Adjusted EBITDA
for the quarter was $135.5 million.
Cost of sales for the first quarter of 2017 were $106.1 million, or
41.8% of total revenues and includes mining costs, transportation and
royalty costs. Cash cost of sales (free-on-board port) per short ton was
$93.75 in the first quarter that reflects higher volumes and realized
pricing, which increases wage, transportation and royalty costs.
Selling, general and administrative expenses for the first quarter 2017
were $5.2 million, or 2.0% of total revenues. Depreciation and depletion
costs for the first quarter 2017 were $14.6 million, or 5.7% of total
revenues and primarily consists of depreciation of machinery and
equipment and depletion of mineral interests. Transaction and other
costs associated with the Company’s initial public offering were $9.0
million for the first quarter of 2017. Warrior incurred interest expense
of $0.6 million, and recognized income tax expense of $1.9 million for
the first quarter of 2017.
Cash Flow and Liquidity
The Company generated strong cash flow from operating activities in the
first quarter of 2017 of $65.6 million, net of a $58.1 million build in
working capital. The working capital use of cash primarily reflects
higher sales volume and realized pricing in accounts receivable as well
as higher than expected inventory levels from higher coal production in
the first quarter of 2017. Capital expenditures for the first quarter
2017 were $11.4 million, resulting in free cash flow of $54.2 million.
Cash flows used in financing activities were $190.8 million which
reflected the payment of a special dividend distribution of $190.0
million in the first quarter of 2017 prior to Warrior’s initial public
offering.
The Company’s available liquidity as of the end of the quarter was $95.9
million, consisting of cash and cash equivalents of $13.5 million and
$82.4 million available under our Asset-Based Revolving Credit Agreement.
Capital Allocation Programs
On May 17, 2017, Warrior’s Board of Directors adopted a policy of paying
a quarterly cash dividend of $0.05 per share. The initial quarterly
dividend will be paid on June 13, 2017 to stockholders of record on May
30, 2017.
In addition to the regular quarterly dividend and to the extent that the
Company generates excess cash that is beyond the then current
requirements of the business, the Board may consider returning all or a
portion of such excess cash to stockholders through a special dividend
or implementation of a stock repurchase program. Any future dividends or
stock repurchases will be at the discretion of the Board and subject to
consideration of a number of factors including business and market
conditions, future financial performance and other strategic investment
opportunities. The Company will also seek to optimize its capital
structure to improve returns to stockholders while allowing flexibility
for the Company to pursue very selective strategic growth opportunities
which can provide compelling stockholder returns.
Company Outlook
The Company expects to continue to ramp up production at its mines in
2017 from the levels achieved in 2016. Given the positive results of the
first quarter, including production that was 33% higher than our plans,
the Company has updated its internal plans and established the following
guidance for 2017:
|
|
| |
|
Coal sales
| | |
5.9 - 6.3 million short tons
|
|
Coal production
| | |
6.1 - 6.5 million short tons
|
|
Cash cost of sales (free-on-board port)
| | | $89 - $95 per short ton
|
|
Capital expenditures
| | | $97 - $117 million |
|
Selling, general and administrative expenses
| | | $26 - $29 million |
| | |
|
Factors that may affect outlook include:
- Quarterly HCC benchmark pricing
- Number of longwall operation moves and timing of those moves between
quarters. The following are the expected longwall moves for the
remainder of 2017: Q2 - 0 moves, Q3 - 1 move, Q4 - 2 moves.
- Excludes transaction or other non-recurring costs
The Company does not provide reconciliations of its outlook for cash
cost of sales (free-on-board port) to cost of sales in reliance on the
unreasonable efforts exception provided for under Item 10(e)(1)(i)(B) of
Regulation S-K. The Company is unable, without unreasonable efforts, to
forecast certain items required to develop the meaningful comparable
GAAP cost of sales. These items typically include non-cash asset
retirement obligation accretion expenses, mine idling expenses and other
non-recurring indirect mining expenses that are difficult to predict in
advance in order to include a GAAP estimate.
Use of Non-GAAP Measures
This release contains the use of certain U.S. non-GAAP (“Generally
Accepted Accounting Principles”) measures. These non-GAAP measures are
provided as supplemental information for financial measures prepared in
accordance with GAAP. Management believes that these non-GAAP measures
provide additional insights into the performance of the Company, and
they reflect how management analyzes Company performance and compares
that performance against other companies. These non-GAAP measures may
not be comparable to other similarly titled measures used by other
entities. The definition of these non-GAAP measures and a reconciliation
of non-GAAP to GAAP measures is provided in the financial tables section
of this release.
Conference Call
The Company will hold a conference call to discuss its first quarter
2017 results today, May 18, 2017, at 4:30 p.m. ET. To listen to the
event live or access an archived recording, please visit http://investors.warriormetcoal.com/.
Analysts and investors who would like to participate in the conference
call should dial 1-866-807-9684 (domestic) or 1-412-317-5415
(international) 10 minutes prior to the start time and reference the
Warrior Met Coal conference call.
Telephone playback will also be available beginning at 7:30 p.m. ET May
18, 2017. The replay will be available by calling: 1-877-344-7529
(domestic) or 1-412-317-0088 (international) and entering passcode
10107326.
About Warrior Met Coal
Warrior Met Coal is a large scale, low-cost U.S. based producer and
exporter of premium hard coking coal (“HCC”), operating highly efficient
longwall operations in its underground mines located in Alabama. The HCC
that Warrior produces from the Blue Creek coal seam contains very low
sulfur and has strong coking properties and is of a similar quality to
coal referred to as the benchmark HCC produced in Australia. The premium
nature of Warrior’s HCC makes it ideally suited as a base feed coal for
steel makers and results in price realizations near the HCC benchmark.
Warrior sells all of its met coal production to steel producers in
Europe, South America and Asia. For more information about Warrior Met
Coal, please visit www.warriormetcoal.com.
Forward-Looking Statements
This press release contains, and the Company’s officers and
representatives may from time to time make, forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended.All statements, other than statements of historical
facts, included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will or
may occur in the future are forward-looking statements.The words
“believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,”
“project,” “target,” “foresee,” “should,” “would,” “could,” “potential,”
or other similar expressions are intended to identify forward-looking
statements. However, the absence of these words does not mean that the
statements are not forward-looking. These forward-looking statements
represent management’s good faith expectations, projections, guidance or
beliefs concerning future events, and it is possible that the results
described in this press release will not be achieved.These
forward-looking statements are subject to risks, uncertainties and other
factors, many of which are outside of the Company’s control, that could
cause actual results to differ materially from the results discussed in
the forward-looking statements, including, without limitation,
fluctuations or changes in the pricing or demand for the Company’s coal
(or met coal generally) by the global steel industry; legislation and
regulations relating to the Clean Air Act and other environmental
initiatives; regulatory requirements associated with federal, state and
local regulatory agencies, and such agencies’ authority to order
temporary or permanent closure of the Company’s mines; operational,
logistical, geological, permit, license, labor and weather-related
factors, including equipment, permitting, site access, operational risks
and new technologies related to mining; the Company’s obligations
surrounding reclamation and mine closure; inaccuracies in the Company’s
estimates of its met coal reserves; the Company’s ability to develop or
acquire met coal reserves in an economically feasible manner;
significant cost increases and fluctuations, and delay in the delivery
of raw materials, mining equipment and purchased components; competition
and foreign currency fluctuations; fluctuations in the amount of cash
the Company generates from operations, including cash necessary to pay
any special or quarterly dividend or to initiate a stock repurchase
program; the Company’s ability to comply with covenants in its credit
facility; integration of businesses that the Company may acquire in the
future; adequate liquidity and the cost, availability and access to
capital and financial markets; failure to obtain or renew surety bonds
on acceptable terms, which could affect the Company’s ability to secure
reclamation and coal lease obligations; costs associated with
litigation, including claims not yet asserted; and other factors
described in the Company’s filings with the U.S. Securities and Exchange
Commission (“SEC”), including its Registration Statement on Form S-1
(File No. 333-216499) and Form 10-Q for the quarterly period ended March
31, 2017 and other reports filed from time to time with the SEC, which
could cause the Company’s actual results to differ materially from those
contained in any forward-looking statement. The Company’s filings with
the SEC are available on its website at www.warriormetcoal.com
and on the SEC's website at www.sec.gov.
Any forward-looking statement speaks only as of the date on which it
is made, and, except as required by law, the Company does not undertake
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.New
factors emerge from time to time, and it is not possible for the Company
to predict all such factors.
Note Regarding “Predecessor” Comparisons
The Company’s results on a “Predecessor” basis relate to the assets
acquired and liabilities assumed by Warrior Met Coal, LLC from Walter
Energy, Inc. in the asset acquisition described in the Company’s
Registration Statement on Form S-1 (File No. 333-216499) and the related
periods ending on or prior to March 31, 2016. The Company’s results on a
“Successor” basis relate to Warrior Met Coal, LLC and its subsidiaries
for periods beginning as of April 1, 2016 and Warrior Met Coal, Inc.
after giving effect to its corporate conversion on April 12, 2017 from a
Delaware limited liability company into a Delaware corporation. The
historical costs and expenses reflected in the Predecessor combined
results of operations include an allocation for certain corporate
functions historically provided by Walter Energy Inc. Certain functions
critical to the Predecessor’s operations were centralized and managed by
Walter Energy, Inc. Historically, the centralized functions have
included executive senior management, financial reporting, financial
planning and analysis, accounting, shared services, information
technology, tax, risk management, treasury, legal, human resources, and
strategy and development. The costs of each of these services has been
allocated to the Predecessor on the basis of the Predecessor’s relative
headcount, revenue and total assets to that of Walter Energy, Inc.
| WARRIOR MET COAL, INC. | |
| CONDENSED STATEMENTS OF OPERATIONS |
| ($ in thousands, except per share) |
|
| |
|
| Successor |
|
| Predecessor |
| | For the three
months ended
March 31,
2017
(Unaudited) | | | For the three
months ended
March 31, 2016 |
|
Revenues:
| | | | | |
|
Sales
| |
$
|
241,056
| | | |
$
|
65,154
| |
|
Other revenues
| |
12,908
|
| | |
6,229
|
|
|
Total revenues
| |
253,964
|
| | |
71,383
|
|
|
Costs and expenses:
| | | | | |
|
Cost of sales (exclusive of items shown separately below)
| |
106,144
| | | |
72,297
| |
|
Cost of other revenues (exclusive of items shown separately below)
| |
8,179
| | | |
4,698
| |
|
Depreciation and depletion
| |
14,582
| | | |
28,958
| |
|
Selling, general and administrative
| |
5,170
| | | |
9,008
| |
|
Other postretirement benefits
| |
—
| | | |
6,160
| |
|
Restructuring costs
| |
—
| | | |
3,418
| |
|
Transaction and other costs
| |
9,036
|
| | |
—
|
|
|
Total costs and expenses
| |
143,111
|
| | |
124,539
|
|
|
Operating income (loss)
| |
110,853
| | | |
(53,156
|
)
|
|
Interest expense, net
| |
(608
|
)
| | |
(16,562
|
)
|
|
Reorganization items, net
| |
—
|
| | |
7,920
|
|
|
Income (loss) before income tax expense
| |
110,245
| | | |
(61,798
|
)
|
|
Income tax expense
| |
1,937
|
| | |
18
|
|
|
Net income (loss)
| |
$
|
108,308
|
| | |
$
|
(61,816
|
)
|
|
Basic and diluted net income per share (1):
| | | | | |
|
Net income per share—basic and diluted
| |
$
|
2.06
|
| | | |
|
Weighted average number of shares outstanding—basic and diluted
| |
52,681
|
| | | |
|
Dividends per share:
| |
$
|
3.56
|
| | | |
| | | | | | |
|
(1) On April 12, 2017, in connection with the Company’s
initial public offering (“IPO”), Warrior Met Coal, LLC filed a
certificate of conversion, whereby Warrior Met Coal, LLC effected
a corporate conversion from a Delaware limited liability company
to a Delaware corporation and changed its name to Warrior Met
Coal, Inc. In connection with this corporate conversion, the
Company filed a certificate of incorporation. Pursuant to the
Company’s certificate of incorporation, the Company is authorized
to issue up to 140,000,000 shares of common stock $0.01 par value
per share and 10,000,000 shares of preferred stock $0.01 par value
per share. The number of shares and per share amounts of common
stock have been retroactively recast to reflect the corporate
conversion.
|
| | | | | | |
|
| WARRIOR MET COAL, INC. |
| QUARTERLY SUPPLEMENTAL FINANCIAL DATA AND RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES |
| (Unaudited) |
|
|
| |
|
| |
QUARTERLY SUPPLEMENTAL FINANCIAL DATA: |
| | | | | |
|
| | | Successor | | | Predecessor |
| | | For the three
months ended
March 31,
2017
(Unaudited) | | | For the three
months ended
March 31,
2016 |
|
(tons in thousands)
| | | Short Tons (1) | | | Short Tons (1) |
|
Tons sold
| | | |
1,127
| | | | |
856
| |
|
Tons produced
| | | |
1,614
| | | | |
883
| |
|
Average selling price
| | |
$
|
213.89
| | | |
$
|
76.11
| |
|
Quarterly HCC benchmark price
| | |
$
|
258.62
| | | |
$
|
73.50
| |
|
Cash cost of sales (free on board port) per short ton (2) | | |
$
|
93.75
| | | |
$
|
63.27
| |
(1) 1 short ton is equivalent to 0.907185 metric tons.
| | | | | | |
| | | | | |
|
RECONCILIATION OF CASH COST OF SALES TO COST OF SALES REPORTED
UNDER U.S. GAAP: |
| | | | | |
|
| | | Successor | | | Predecessor |
(in thousands)
| | | For the three
months ended
March 31,
2017
(Unaudited) | | | For the three
months ended
March 31,
2016 |
|
Cost of sales
| | |
$
|
106,144
| | | |
$
|
72,297
| |
|
Asset retirement obligation accretion
| | | |
(481
|
)
| | | |
(93
|
)
|
|
Mine No. 4 idle costs
| | | |
—
| | | | |
(10,173
|
)
|
|
Other (operating overhead, etc.)
| | |
|
—
|
| | |
|
(7,843
|
)
|
|
Cash cost of sales (free on board port)(2) | | |
$
|
105,663
|
| | |
$
|
54,188
|
|
| | | | | | | | | |
|
(2) Cash cost of sales (free on board port) is based on
reported cost of sales and includes items such as freight,
royalties, labor, fuel and other similar production and sales cost
items, and may be adjusted for other items that, pursuant to GAAP,
are classified in the Condensed Statements of Operations as costs
other than cost of sales, but relate directly to the costs
incurred to produce met coal. Our cash cost of sales per short ton
is calculated as cash cost of sales divided by the short tons
sold. Cash cost of sales per short ton is a non-GAAP financial
measure which is not calculated in conformity with U.S. Generally
Accepted Accounting Principles (GAAP) and should be considered
supplemental to, and not as a substitute or superior to financial
measures calculated in conformity with GAAP. We believe cash cost
of sales per ton is a useful measure of performance and we believe
it aids some investors and analysts in comparing us against other
companies to help analyze our current and future potential
performance. Cash cost of sales per ton may not be comparable to
similarly titled measures used by other companies.
|
| | | | | | | | | |
|
|
|
| WARRIOR MET COAL, INC. |
| QUARTERLY SUPPLEMENTAL FINANCIAL DATA AND RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES (CONTINUED) |
| (Unaudited) |
|
|
RECONCILIATION OF ADJUSTED EBITDA TO AMOUNTS REPORTED UNDER
U.S. GAAP: |
|
|
| Successor |
|
| Predecessor |
|
(in thousands)
| | | For the three
months ended
March 31,
2017
(Unaudited) | | | For the three
months ended
March 31,
2016 |
|
Net income (loss)
| | |
$
|
108,308
| | |
$
|
(61,816
|
)
|
|
Interest expense, net
| | | |
608
| | | |
16,562
| |
|
Income tax expense
| | | |
1,937
| | | |
18
| |
|
Depreciation and depletion
| | | |
14,582
| | | |
28,958
| |
|
Asset retirement obligation accretion
| | | |
995
| | | |
1,169
| |
|
Stock compensation expense
| | | |
—
| | | |
390
| |
|
Transaction and other costs
| | | |
9,036
| | | |
—
| |
|
Reorganization items, net
| | | |
—
| | | |
(7,920
|
)
|
|
Restructuring costs
| | | |
—
| | | |
3,418
| |
|
Mine No. 4 idle costs
| | |
|
—
| | |
|
10,173
|
|
|
Adjusted EBITDA (3) | | |
$
|
135,466
| | |
$
|
(9,048
|
)
|
| | | | | |
|
(3) Adjusted EBITDA is defined as net income (loss)
before net interest expense, income tax expense, depreciation and
depletion, non-cash asset retirement obligation accretion,
non-cash stock compensation expense, transaction and other costs,
net reorganization items, restructuring costs, and Mine No. 4
idle costs. Adjusted EBITDA is not a measure of financial
performance in accordance with GAAP, and we believe items excluded
from Adjusted EBITDA are significant to a reader in understanding
and assessing our financial condition. Therefore, Adjusted EBITDA
should not be considered in isolation, nor as an alternative to
net income, income from operations, cash flows from operations or
as a measure of our profitability, liquidity or performance under
GAAP. We believe that Adjusted EBITDA presents a useful measure
of our ability to incur and service debt based on ongoing
operations. Furthermore, analogous measures are used by industry
analysts to evaluate our operating performance. Investors should
be aware that our presentation of Adjusted EBITDA may not be
comparable to similarly titled measures used by other companies.
|
| | | | | |
|
RECONCILIATION OF ADJUSTED NET INCOME TO AMOUNTS REPORTED UNDER
U.S. GAAP: |
| | | | | |
|
| | | Successor | | | Predecessor |
|
(in thousands, except per share amounts)
| | | For the three
months ended
March 31,
2017
(Unaudited) | | | For the three
months ended
March 31,
2016 |
|
Net income (loss)
| | |
$
|
108,308
| | |
$
|
(61,816
|
)
|
|
Transaction and other costs, net of tax
| | | |
8,882
| | | |
—
| |
|
Reorganization items, net, net of tax
| | | |
—
| | | |
(7,918
|
)
|
|
Restructuring costs, net of tax
| | | |
—
| | | |
3,417
| |
|
Mine No. 4 idle costs, net of tax
| | |
|
—
| | |
|
10,170
|
|
|
Adjusted net income (loss) (4) | | |
$
|
117,190
| | |
$
|
(56,147
|
)
|
| | | | | |
|
|
Weighted average number of basic and diluted shares outstanding
| | | |
52,681
| | | |
| | | | | |
|
|
Adjusted basic and diluted income per share:
| | |
$
|
2.22
| | | |
| | | | | | |
|
(4) Adjusted net income (loss) is defined as net income
(loss) net of the following items net of tax (based on each
respective period's effective tax rate): transaction and other
costs, reorganization items, net, restructuring costs, and Mine
No. 4 idle costs. Adjusted net income (loss) is not a measure of
financial performance in accordance with GAAP, and we believe
items excluded from adjusted net income (loss) are significant to
the reader in understanding and assessing our results of
operations. Therefore, adjusted net income (loss) should not be
considered in isolation, nor as an alternative to net income under
GAAP. We believe adjusted net income (loss) is a useful measure of
performance and we believe it aids some investors and analysts in
comparing us against other companies to help analyze our current
and future potential performance. Adjusted net income (loss) may
not be comparable to similarly titled measures used by other
companies.
|
|
|
| WARRIOR MET COAL, INC. |
| CONDENSED STATEMENTS OF CASH FLOWS |
| ($ in thousands) |
|
|
| |
|
|
| Successor | | | Predecessor |
| | | For the three months ended March 31, 2017
(Unaudited) | | | For the three months ended March 31, 2016 |
|
OPERATING ACTIVITIES
| | | | | | |
|
Net income (loss)
| | |
$
|
108,308
| | | |
$
|
(61,816
|
)
|
|
Non-cash adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities
| | | |
16,039
| | | | |
21,817
| |
|
Changes in operating assets and liabilities:
| | | | | | |
|
Trade accounts receivable
| | | |
(30,284
|
)
| | | |
15,097
| |
|
Other receivables
| | | |
(242
|
)
| | | |
1,070
| |
|
Inventories
| | | |
(28,592
|
)
| | | |
677
| |
|
Prepaid expenses and other current assets
| | | |
(2,167
|
)
| | | |
13,020
| |
|
Accounts payable
| | | |
10,237
| | | | |
(15,338
|
)
|
|
Accrued expenses and other current liabilities
| | | |
(7,055
|
)
| | | |
(16,083
|
)
|
|
Other
| | |
|
(691
|
)
| | |
|
858
|
|
|
Net cash provided by (used in) operating activities
| | |
|
65,553
|
| | |
|
(40,698
|
)
|
|
INVESTING ACTIVITIES
| | |
| | |
|
|
Net cash used in investing activities
| | |
|
(11,378
|
)
| | |
|
(5,422
|
)
|
|
FINANCING ACTIVITIES
| | |
| | |
|
|
Net cash used in financing activities
| | |
|
(190,765
|
)
| | |
|
(6,240
|
)
|
|
Net decrease in cash and cash equivalents and restricted cash
| | | |
(136,590
|
)
| | | |
(52,360
|
)
|
|
Cash and cash equivalents and restricted cash at beginning of period
| | |
|
152,656
|
| | |
|
84,462
|
|
|
Cash and cash equivalents and restricted cash at end of period
| | |
$
|
16,066
|
| | |
$
|
32,102
|
|
| | | | | |
|
RECONCILIATION OF FREE CASH FLOW TO AMOUNTS REPORTED UNDER U.S.
GAAP: |
| | | | | |
|
| | | Successor | | | Predecessor |
|
(in thousands)
| | | For the three
months ended
March 31,
2017
(Unaudited) | | | For the three
months ended
March 31,
2016 |
|
Net cash provided by (used in) operating activities
| | |
$
|
65,553
| | | |
$
|
(40,698
|
)
|
|
Purchases of property, plant and equipment
| | |
|
(11,378
|
)
| | |
|
(5,422
|
)
|
|
Free cash flow (5) | | |
$
|
54,175
|
| | |
$
|
(46,120
|
)
|
| | | | | |
|
(5) Free cash flow is defined as net cash provided by
(used in) operating activities less purchases of property, plant
and equipment. Free cash flow is not a measure of financial
performance in accordance with GAAP, and we believe items adjusted
for from net cash provided by (used in) operating activities are
significant to the reader in understanding and assessing our
results of operations. Therefore, free cash flow should not be
considered in isolation, nor as an alternative to net cash
provided by (used in) operating activities under GAAP. We believe
free cash flow is a useful measure of performance and we believe
it aids some investors and analysts in comparing us against other
companies to help analyze our current and future potential
performance. Free cash flow may not be comparable to similarly
titled measures used by other companies.
|
|
|
| |
| WARRIOR MET COAL, INC. |
| CONDENSED BALANCE SHEETS |
| ($ in thousands) |
| | |
|
|
|
| Successor |
| | | March 31, 2017 (Unaudited) | | | December 31,
2016 |
| ASSETS | | | | | | |
|
Current assets:
| | | | | | |
|
Cash and cash equivalents
| | |
$
|
13,455
| | |
$
|
150,045
| |
|
Short-term investments
| | | |
17,501
| | | |
17,501
| |
|
Trade accounts receivable
| | | |
96,180
| | | |
65,896
| |
|
Other receivables
| | | |
6,142
| | | |
5,901
| |
|
Inventories, net
| | | |
72,101
| | | |
39,420
| |
|
Prepaid expenses
| | |
|
14,177
| | |
|
12,010
|
|
|
Total current assets
| | | |
219,556
| | | |
290,773
| |
|
Mineral interests, net
| | | |
137,392
| | | |
143,231
| |
|
Property, plant and equipment, net
| | | |
492,264
| | | |
496,959
| |
|
Other long-term assets
| | |
|
16,733
| | |
|
16,668
|
|
|
Total assets
| | |
$
|
865,945
| | |
$
|
947,631
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
|
Current liabilities:
| | | | | | |
|
Accounts payable
| | |
$
|
16,280
| | |
$
|
6,043
| |
|
Accrued expenses
| | | |
43,413
| | | |
47,339
| |
|
Other current liabilities
| | | |
5,559
| | | |
8,405
| |
|
Current portion of long-term debt
| | |
|
2,878
| | |
|
2,849
|
|
|
Total current liabilities
| | | |
68,130
| | | |
64,636
| |
|
Long-term debt
| | | |
2,995
| | | |
3,725
| |
|
Deferred income taxes
| | | |
1,944
| | | |
1,944
| |
|
Asset retirement obligations
| | | |
96,960
| | | |
96,050
| |
|
Other long-term liabilities
| | |
|
28,165
| | |
|
28,309
|
|
|
Total liabilities
| | | |
198,194
| | | |
194,664
| |
|
Stockholders’ Equity (1):
| | | | | | |
|
Common stock, $0.01 par value per share (140,000,000 shares
authorized, 53,442,532 shares issued and outstanding)
| | | |
534
| | | |
533
| |
|
Preferred stock, $0.01 par value per share (10,000,000 shares
authorized, no shares issued and outstanding)
| | | |
—
| | | |
—
| |
|
Additional paid in capital
| | | |
608,582
| | | |
802,107
| |
|
Retained earnings (accumulated deficit)
| | |
|
58,635
| | |
|
(49,673
|
)
|
|
Total stockholders’ equity
| | |
|
667,751
| | |
|
752,967
|
|
|
Total liabilities and stockholders’ equity
| | |
$
|
865,945
| | |
$
|
947,631
|
|
| | | | | | | | |
|
(1) On April 12, 2017, in connection with the Company’s
initial public offering (“IPO”), Warrior Met Coal, LLC filed a
certificate of conversion, whereby Warrior Met Coal, LLC effected
a corporate conversion from a Delaware limited liability company
to a Delaware corporation and changed its name to Warrior Met
Coal, Inc. In connection with this corporate conversion, the
Company filed a certificate of incorporation. Pursuant to the
Company’s certificate of incorporation, the Company is authorized
to issue up to 140,000,000 shares of common stock, $0.01 par value
per share, and 10,000,000 shares of preferred stock, $0.01 par
value per share. The number of shares and per share amounts of
common stock have been retroactively recast to reflect the
corporate conversion.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170518006222/en/
Warrior Met Coal, Inc.
Investors:
Dale W. Boyles,
205-554-6129
[email protected]
or
Media:
William
Stanhouse, 205-554-6131
[email protected]
Source: Warrior Met Coal, Inc.